A Car Blog. Only Angrier

Tuesday, October 23, 2007

Porsche To Invade VW

We're trying to figure out why Porsche would buy up the rest of VW (that is, if they decide to do so). PorscheW won't likely make the Scirocco a really fast car to compete with the Boxster/Cayman and VW's already been burned at the high-end with the Phaeton. Is Porsche going to enter the sedan market maybe? Or go lower-end with a Porsche branded Scirocco?

VW builds the chassis for both the Cayenne and Panamera. When the law projecting VW from anyone group owning it was repealed, it was relatively undervalued. A large equity firm could swoop in an buy controlling share of it and cut-off or hamper Porsche's supply of chassis for its most profitable marque.

Porsche is also the most profitable car maker in the world currently. (They sell every car for what they ask, why wouldn't they be?) So they are sitting on enough cash to be called a butt-load of cash. They are probably looking to move some of that cash into assets.